LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
74th Regular Session
May 18, 1995
TO: Honorable Bill Ratliff, Chair IN RE: Committee Substitute
Committee on Education for
Senate HouseBill No.
Austin, Texas 2309
FROM: John Keel, Director
In response to your request for a Fiscal Note on House Bill No.
2309 (Relating to the basic skills assessment of students at
institutions of higher education and to programs for students in
need of enrichment in those basic skills) this office has
determined the following:
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
The bill would change the Texas Academic Skills Program (TASP)
from a testing instrument for remedial needs to an assessment and
enrichment program. It would require the Higher Education
Coordinating Board to develop an assessment procedure that would
be administered to all incoming students in higher education. It
would provide certain exemptions, including students who are deaf
or blind, older students, or students pursuing certificates. It
would specify that the costs of administering the assessment
procedures be borne by the students taking it. Based on the
results of the assessment, institutions could require students to
take enrichment courses which must be completed before a student
finishes 60 hours of course work. Retesting would be required
for students with deficiencies in reading or writing. Students
with deficiencies in mathematics could be required to retest
once, after which they would have the option of taking and
passing the first required mathematics course in their discipline
or taking further enrichment courses and retesting. Finally, the
bill would also require the Coordinating Board to develop
formulae which provide augmented funding for courses with higher
than average student failure rates. The bill would be effective
September 1, 1995 but for purposes of this fiscal note it is
presumed that the major provisions could not be implemented until
FY 1997.
Local community/junior college taxing districts would have
savings due to decreased enrollment in remedial (enrichment)
courses. Most certificate programs are currently TASP exempt and
only about 1,500 students enrolled in certificate programs are
required to participate in TASP. It is estimated that the bill
would result in a decreased enrollment of 85 full-time equivalent
students (FTE). Other provisions of the bill would have similar
effects of reducing remedial enrollment. In total, it is
estimated that enrollment in remedial education at community
colleges would decrease by 615 FTE students for a savings to the
colleges of $800,000 per year.
It is anticipated that the changes in the mathematics requirement
would result in a decrease in remedial enrollment at universities
of 100 FTE students for an estimated saving to the State of
$470,000 per year.
For purposes of this fiscal note it is assumed that existing
assessment instruments could be used to implement the provisions
of the bill. The bill would result in general revenue savings
due to decreased enrollments in remedial (enrichment) courses in
both community/junior colleges and universities. As indicated
above, enrollments at community/junior colleges would decline by
615 FTE at an average cost to the state of approximately $1,300
or $800,000 per year. Similar savings would be realized by local
community college taxing districts. The bill would result in
additional general revenue savings due to decreased enrollment in
remedial courses at universities of 100 FTE students for an
annual saving to general revenue of $470,000 per year.
The probable fiscal implication of implementing the provisions of
the bill during each of the first five years following passage
is estimated as follows:
Fiscal Probable Savings Probable Savings
Year to General to
Revenue Fund 001 Community College
Districts
1996 $1,270,000 $800,000
1997 1,270,000 800,000
1998 1,270,000 800,000
1999 1,270,000 800,000
2000 1,270,000 800,000
Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.
Source: Higher Education Coordinating Board
LBB Staff: JK, MK, WRR